IMF lowers India's GDP growth forecast to 7% for FY20
24 July 2019
The growth is expected to rise to 7.2 per cent points in FY21, down by the projected growth rate of 7.5 in the earlier report."India`s economy is set to grow at 7.0 per cent in 2019, picking up to 7.2 percent in 2020.
The International Monetary Fund (IMF) has cut its projection for India`s economic growth for the fiscal year 2019-20 by 0.3 percentage points to 7 per cent, owing to, what is says, a "weaker-than-expected outlook" for the domestic demand.
The growth is expected to rise to 7.2 per cent points in FY21, down 3 basis points from the 7.5 per cent growth rate projected earlier.
"India`s economy is set to grow at 7.0 per cent in 2019, picking up to 7.2 per cent in 2020. The downward revision of 0.3 percentage point for both years reflects a weaker-than-expected outlook for domestic demand," the IMF stated in its World Economic Update.
The IMF also cut is global economic growth forecast for FY20 by 0.1 percentage points to 3.2 per cent. This is the fourth consecutive time that IMF has lowered its global growth forecast.
The IMF lowered its growth forecast on the basis of increased trade frictions between the United States and China, prolonged uncertainty on Brexit, and weaker-than-expected activity in emerging market and developing economies.
"Among emerging market and developing economies, the first-quarter GDP in China was stronger than forecast, but indicators for the second quarter suggest a weakening of activity. Elsewhere in emerging Asia, as well as in Latin America, activity has disappointed," the report read.